FrieslandCampina made a substantially smaller profit in 2020. The impact of the coronavirus crisis and high restructuring costs are the underlying causes of the low result.
Exchange rate effects
Despite the coronavirus crisis, the dairy giant’s turnover remained practically stable. Reported sales did fall by 1.4 per cent to 11.1 billion, but this was mainly due to unfavourable exchange rate effects. Furthermore, higher revenues from ingredients (e.g. for sports nutrition), retail and e-commerce offset lower sales in Hong Kong and the out-of-home channel.
In contrast to sales, operating profit plunged (-38 per cent) to 268 million euros. Restructuring costs of 106 million euros and unfavourable exchange rate effects weighed on the result. Excluding these one-off costs and the exchange rate effects, the operating result fell by 10.9 per cent. On a net basis, a profit of 79 million euros was made, down 71.6 per cent compared to 2019.
CEO Hein Schumacher expects the effects of the crisis to be felt at least until the middle of this year.” Even though there is light at the end of the tunnel since vaccination programmes are starting up worldwide, we will still be in the midst of the Covid crisis in the coming months. The first half of 2021 will, therefore, be characterised by the crisis. However, I am convinced that the acceleration of our strategy combined with structural cost savings will allow us to absorb shocks better and increase the positive impact during post-Covid times.”
